The amendments effectively expand the export coverage of completely built-up units (CBUs).
Trade and Industry Secretary Cesar V. Purisima said the measure is also expected to increase parts manufacturing in the country.
Based on the preliminary study of the BOI, expanding the coverage of CBUs for exports would mean increasing the production and sales of CBUs to 200,000 to 250,000 units consistent with the motor vehicle development plan in the next five year and at the same time increase auto parts export level to $2.75 billion in the next three years.
The challenge to the country, Purisima said, would be to strengthen its reputation as a competitive and reliable production base for auto exports.
"We should put in place the necessary infrastructure for manufacturing firms so that the country will be more competitive and ready in addressing the needs of emerging markets like China, India and the ASEAN," Purisima said.
At present, only Ford Motor Company Philippines is participating in the AEP.
However, Mitsubishi Motor Philippines Corp. (MMPC) has disclosed its plan to join the AEP with the production of a small sports utility vehicle.
Under the AEP, participating automotive firms would be entitled to a tax incentive for their CBU exports provided that they reach a minimum export volume.
Malacañang is expected to sign the revised EO 244 by May 1.